Microchip Technology Inc (MCHP)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Long-term debt	US$ in thousands	5,000,400	5,041,700	7,687,400	7,581,200	8,873,400
Total assets	US$ in thousands	15,873,200	16,370,300	16,199,500	16,478,800	17,426,100
Debt-to-assets ratio		0.32	0.31	0.47	0.46	0.51

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,000,400K ÷ $15,873,200K
= 0.32

The debt-to-assets ratio of Microchip Technology Inc has shown a relatively stable trend over the past five years. The ratio has ranged from 0.31 to 0.51 during this period, indicating that the company has maintained a prudent level of leverage in relation to its total assets.

In the most recent fiscal year ending March 31, 2024, the debt-to-assets ratio stood at 0.32, slightly higher than the previous year's ratio of 0.31. This suggests that the company's total debt relative to its total assets has increased marginally. However, the ratio remains below 1, indicating that Microchip Technology Inc has more assets than debt, which is generally considered a positive sign for investors and creditors.

Overall, the consistent trend of the debt-to-assets ratio within a reasonable range suggests that Microchip Technology Inc has been managing its debt levels effectively, balancing the use of debt to finance its operations while maintaining a solid asset base. Investors and stakeholders may view this as a sign of financial stability and prudent financial management within the company.